Core Insights - Norfolk Southern experienced a decline in intermodal volume, revenue, and profits in the fourth quarter due to heightened competition, particularly from CSX, which formed an intermodal alliance with BNSF Railway [1][2] Financial Performance - Quarterly operating income fell 17% to $937 million, while revenue decreased 2% to $3 billion. Adjusted for one-time items, operating income was down 3% to $1 billion, and earnings per share declined 11% to $2.87, but increased 6% to $3.22 on an adjusted basis [4] - The operating ratio for the fourth quarter was 68.5%, up from 62.6% in the fourth quarter of 2024, with an adjusted operating ratio of 65.3% [5] Volume and Traffic - Intermodal volume dropped by 7%, leading to a 4% decline in overall traffic. However, merchandise and coal business saw a 1% increase for the quarter [1][5] - Despite the decline in intermodal traffic, Norfolk Southern managed to move 3% more gross ton-miles in 2025 with 4% fewer employees [2] Strategic Initiatives - Norfolk Southern and Union Pacific plan to file a revised merger application with the Surface Transportation Board in March, which, if approved, would create the first transcontinental railroad [3] - The company is actively seeking to optimize revenue and attract quality carloads, with initiatives such as the UP-NS interline service and the launch of double-stack service to New England [6]

Core Insights - Hub Group, Inc. is recognized as one of the best freight stocks to invest in currently, despite mixed second-quarter results and a strategic acquisition to expand its service offerings [1] Financial Performance - The company reported an EPS of $0.42 for Q2 2025, with revenue of $906 million, reflecting an 8% decrease compared to Q2 2024 [2] - Revenue per unit in intermodal and brokerage has decreased, alongside reduced fuel revenue and sub-seasonal demand, although there was a 2% growth in Intermodal volume [2] Strategic Developments - Hub Group aims to enhance its Temperature-Controlled Intermodal Service through the acquisition of Marten Transport Intermodal, announced on July 22, 2025 [3] - The acquisition, valued at $51.8 million, will be executed in cash and structured as an asset purchase of equipment and contracts [3] Institutional Interest - The company has garnered interest from institutional investors, with 27 hedge funds holding ownership stakes, and its current upside potential is estimated at 6.87% [4] - Hub Group, founded in 1971 and based in Illinois, specializes in intermodal transportation, utilizing a combination of rail and trucks for cost-effective freight services across North America [4]